Tenant to pay ground rent

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    Tenant to pay ground rent

    I have leasehold property. No clauses whatsoever re letting - freeholder has agreed that there are no clauses.
    I have tenant(relative) who is happy to pay ground rent - there are no service charges as only 2 flats whose leases divide areas of maintenance responsibility. If I let freeholder know their name etc, is it okay for freeholder to send demand to the tenant for them to pay? Freeholder has said that she is happy to do this. Or is there some sort of law that says demand must go to leaseholder rather than their "designated person"

    #2
    The legal owner of the flat pays the ground rent and service charges.

    There is no reason for a person renting a flat to pay the ground rent
    once a year, as the property does not belong to them.

    Do not complicate matters,as if your tenant does not pay the ground
    rent, you could lose your flat for none payment of ground rent.
    You will have NO comeback on the tenant if your flat is forfeited for
    none payment of ground rent.

    Don't even go there.

    Who insures the building if there is no service charge ?

    R.a.M.

    Comment


      #3
      insurance is done between us - in reality organised by upstairs flat and I pay half. My tenant is taking this payment over as well.

      I understand about non payment of ground rent but as it is my brother, him not paying does not concern me. I am cutting ties with UK so prefer the security of ground rent being dealt with/ paid by someone I absolutely trust rather than trying to remember and then organise money order from depths of amazon jungle. Just wanted to know if this was legal, even if stupid under other circumstances.

      Comment


        #4
        Siblings eh? My 33 year old sister just ruined my mother's fridge by using a scourer to clean it.

        Just set up a yearly standing order from your own bank account to pay the ground rent.

        Comment


          #5
          for reasons i dont want to go into, i am literally cutting ties with UK so no bank account. I understand all the dangers re someone else responsible for ground rent but as said before I prefer this arrangement to alternative. Is it legal for freeholder to do this, if she is happy to do so?

          Comment


            #6
            You appreciate the HMRC nonresident landlord scheme & that unless you get certification from HMRC, tenant will have to withhold about 20% of rent for tax man.

            Not having UK bank account may not help your dealings with HMRC. You will have to complete an annual UK tax return.

            My advice, don't let to relatives.
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              The proposal is that he pay peppercorn rent, but is responsible for ground rent and insurance. I dont have a mortgage. We reckoned that would mean no tax implications. I have therfore no uk income. How would HMRC know about any of this?

              Comment


                #8
                You wouldn't happen to be going canoeing would you....

                If you genuinely intend to have nothing further to do with the property, then if the freeholder bills you at the flat, and the freeholder gets a payment, why should he care?

                As the freeholder I would however be very concerned that the person who is responsible for the covenants in the lease is going missing that I would do nothing to undermine my position if your brother starts a meth factory or fails to insure/maintain. Both you and he could lose the property.

                Create an underlease for him a deed of covenant between you him and the FH for him to pay the ground rent and to you a genuine peppercorn rent ie an actual peppercorn. He can withold 20% of that
                Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                Comment


                  #9
                  Originally posted by leaseholdanswers View Post
                  You wouldn't happen to be going canoeing would you....
                  [/I]
                  ..ha. If so its been tried (and failed) think of something original.
                  Advice given is based on my experience representing myself as a leaseholder both in the County Court and at Leasehold Valuation Tribunals.

                  I do not accept any liability to you in relation to the advice given.

                  It is always recommended you seek further advice from a solicitor or legal expert.

                  Always read your lease first, it is the legally binding contract between leaseholder and freeholder.

                  Comment


                    #10
                    Never thought of "canoeing" trick - if I did, I think I would do it better than chappie who was caught.

                    LHA: My thoughts exactly - if freeholder gets money why should she care where it comes from. But on ARMA website code of practise, it recommends that MAs should never take money from anyone other than the leaseholder. Does that include freeholders not doing same. Annoying thing is it doesnt say why eg illegal or just stupid. Hence my question.

                    Comment


                      #11
                      Originally posted by lacktd View Post
                      Never thought of "canoeing" trick - if I did, I think I would do it better than chappie who was caught.

                      LHA: My thoughts exactly - if freeholder gets money why should she care where it comes from. But on ARMA website code of practise, it recommends that MAs should never take money from anyone other than the leaseholder. Does that include freeholders not doing same. Annoying thing is it doesnt say why eg illegal or just stupid. Hence my question.

                      The procedure for accepting money is correctly stated , and what the concerns of a freeholder should be and how to deal with your situation was outlined in the last post.

                      What I was indicating that if the freeholder was taking a decision based on blissful ignorance, then they are unlikely to care, and are simply following your request in all innocence.

                      The payment of rent could lead to a claim to title, which dos not mean that the current obligations will follow, and the FH is left with the obligation to insure and the inability to recharge the cost.

                      If you do intend to cut all ties, never to return, then simply transfer it to him.
                      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

                      Comment

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